State Street has reached an agreement to acquire Mizuho Financial Group’s global custody and related businesses outside Japan. The deal will transfer custody services for the overseas investments of Mizuho’s Japanese clients to State Street, as written in a press release. The agreement is expected to close by the fourth quarter of 2025.
Mizuho currently operates its global custody services outside Japan through two subsidiaries: Mizuho Trust & Banking (Luxembourg) S.A. and Mizuho Bank (USA). Together, these entities manage approximately $580 billion in assets under custody and $24 billion in assets under administration.
Following the sale, Mizuho will focus on providing trust and custody services for domestic assets in Japan while relying on State Street for international custody services.
Expansion in key markets
State Street has maintained operations in Japan for 35 years. Hiroshi Kobayashi, head of Japan at State Street, stated that the company plans to integrate the acquired business into its global operating model.
“As the acquired business integrates into our global operating model, we expect the added scale will allow us to further expand our technology and service capabilities, which will enhance the service experience for our existing and new clients in Japan”, states Kobayashi.
Mizuho shifts
Tsutomu Yamamoto, senior executive officer, head of Global Transaction Banking Unit at Mizuho, adds: “After careful consideration, we have decided to transfer our global custody business to State Street. This strategic move will ensure our clients benefit from State Street’s global platform and deep expertise.”
The acquisition remains subject to regulatory approvals and other closing conditions. If completed as planned, the deal will further consolidate State Street’s role as a global custodian while allowing Mizuho to concentrate on its domestic trust and custody business.
